Traders Start Positioning for Drop in Bond Yields
US treasury yields are near their lowest levels of the year as traders bet on bigger interest rate cuts. Some bond traders are starting to hedge for a possible economic slowdown. Bloomberg's Liz Capo McCormick has the Wall Street Beat on "Bloomberg Open Interest." (Source: Bloomberg)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
18 minutes ago
- Yahoo
Dollar hits fresh 2025 low as US tariff concerns pick up again
(Bloomberg) — The dollar (DX=F) extended its decline as worries over US tariffs increased after President Donald Trump said he would notify trading partners soon of unilateral levies. Shuttered NY College Has Alumni Fighting Over Its Future Trump's Military Parade Has Washington Bracing for Tanks and Weaponry NYC Renters Brace for Price Hikes After Broker-Fee Ban NY Long Island Rail Service Resumes After Grand Central Fire Do World's Fairs Still Matter? The Bloomberg Dollar Spot Index slid as much as 0.6% to the lowest level since July 2023 on Thursday, extending the previous day's drop spurred by softer US inflation data. The euro rose to its strongest since November 2021. Traders will be monitoring US producer-price data due later Thursday for confirmation of subdued pressures. Some of its components feed into core personal consumption expenditure, the Federal Reserve's preferred measure of inflation. They will also watch an auction of 30-year Treasuries after yields surged last month on fiscal concerns. 'Dollar weakness has much more room to run,' said Vasileios Gkionakis, senior economist and strategist at Aviva Investors. He added the greenback's weakness despite rising yields show eroding investor confidence in US assets. The dollar's decline spilled into the currency volatility market, reinforcing the inverse correlation between the greenback and hedging costs recently. Demand was particularly pronounced in the one-week tenor, which captures the Fed's June 18 policy meeting. What Bloomberg's Strategists Say... 'Trader pricing still favors more Federal Reserve interest rate cuts, although the precise timing flips around depending on the prevailing investor mood. But what is consistent is the US dollar ploughing a path to the downside as FX trader convictions firm.' — Mark Cranfield, Markets Live Strategist, Singapore Currency traders will also be watching the upcoming Group-of-Seven summit for any trade negotiation developments. 'We are watching the G-7 summit closely for pending trade deals between the US and its key trading partners (e.g., Mexico and Canada),' said Alex Loo, macro strategist at TD Securities in Singapore. 'Leaks this week may boost sentiment, especially the likes of Canadian dollar and Mexican peso.' (Updates with pricing, analyst quote and options section.) New Grads Join Worst Entry-Level Job Market in Years American Mid: Hampton Inn's Good-Enough Formula for World Domination The Spying Scandal Rocking the World of HR Software The SEC Pinned Its Hack on a Few Hapless Day Traders. The Full Story Is Far More Troubling Cavs Owner Dan Gilbert Wants to Donate His Billions—and Walk Again ©2025 Bloomberg L.P. By subscribing, you are agreeing to Yahoo's Terms and Privacy Policy Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
20 minutes ago
- Bloomberg
Czech President Warns Country May ‘Stay Behind' Without Euro
Czech President Petr Pavel called for the country to adopt the euro as a way to help trade and avoid being left out of key decisions made by members of the currency union. With the economy already deeply integrated with the euro area, the political and public opposition to the currency switch is 'emotional and irrational,' he said in an interview with Bloomberg Television. He added the benefits of keeping the koruna and an independent monetary policy were limited.
Yahoo
20 minutes ago
- Yahoo
Dollar Hits Fresh 2025 Low as US Tariff Concerns Pick Up Again
(Bloomberg) -- The dollar extended its decline as worries over US tariffs increased after President Donald Trump said he would notify trading partners soon of unilateral levies. Shuttered NY College Has Alumni Fighting Over Its Future Trump's Military Parade Has Washington Bracing for Tanks and Weaponry NYC Renters Brace for Price Hikes After Broker-Fee Ban NY Long Island Rail Service Resumes After Grand Central Fire Do World's Fairs Still Matter? The Bloomberg Dollar Spot Index slid as much as 0.6% to the lowest level since July 2023 on Thursday, extending the previous day's drop spurred by softer US inflation data. The euro rose to its strongest since November 2021. Traders will be monitoring US producer-price data due later Thursday for confirmation of subdued pressures. Some of its components feed into core personal consumption expenditure, the Federal Reserve's preferred measure of inflation. They will also watch an auction of 30-year Treasuries after yields surged last month on fiscal concerns. 'Dollar weakness has much more room to run,' said Vasileios Gkionakis, senior economist and strategist at Aviva Investors. He added the greenback's weakness despite rising yields show eroding investor confidence in US assets. The dollar's decline spilled into the currency volatility market, reinforcing the inverse correlation between the greenback and hedging costs recently. Demand was particularly pronounced in the one-week tenor, which captures the Fed's June 18 policy meeting. What Bloomberg's Strategists Say... 'Trader pricing still favors more Federal Reserve interest rate cuts, although the precise timing flips around depending on the prevailing investor mood. But what is consistent is the US dollar ploughing a path to the downside as FX trader convictions firm.' — Mark Cranfield, Markets Live Strategist, Singapore Currency traders will also be watching the upcoming Group-of-Seven summit for any trade negotiation developments. 'We are watching the G-7 summit closely for pending trade deals between the US and its key trading partners (e.g., Mexico and Canada),' said Alex Loo, macro strategist at TD Securities in Singapore. 'Leaks this week may boost sentiment, especially the likes of Canadian dollar and Mexican peso.' (Updates with pricing, analyst quote and options section.) New Grads Join Worst Entry-Level Job Market in Years American Mid: Hampton Inn's Good-Enough Formula for World Domination The Spying Scandal Rocking the World of HR Software The SEC Pinned Its Hack on a Few Hapless Day Traders. The Full Story Is Far More Troubling Cavs Owner Dan Gilbert Wants to Donate His Billions—and Walk Again ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
